Leicester to sue Premier League and EFL

Championship club furious as transfer embargo imposed Statement promises a fight for right ‘to pursue ambitions’

Leicester City have launched legal action against the Premier League and Football League, vowing to fight the threat of heavy sanctions.

After the EFL yesterday imposed a transfer embargo, the Championship club issued a second stronglyworded statement in 24 hours, taking aim at the two organisations.

Leicester were charged with an alleged breach of Premier League profitability and sustainability rules on Thursday, and face a possible points deduction next season. The EFL then imposed a player registration embargo for allegedly exceeding the upper-loss threshold.

Leicester responded angrily and, with the support of lawyer Nick De Marco, issued legal proceedings against both governing bodies.

Their statement read: “LCFC will be seeking that each of these proceedings is determined by an appropriate and fully independent legal panel. The club is committed to ensure that any charges against it are properly and proportionately determined, in accordance with the applicable rules, by the right bodies, and at the right time.

“We reaffirm the club’s position that we will continue to fight for the right of Leicester City and all clubs to pursue their ambitions, particularly where these have been reasonably and fairly established through sustained sporting achievement.”

The transfer embargo means the club cannot register new players or discuss contracts with current ones without EFL approval. It is linked to PSR and was imposed after the EFL reviewed financial submissions. But the club insist restrictions are

“premature”. They said: “The club further notes that... the EFL issued a public notification that LCFC has been placed under a registration embargo pursuant to its P&S rules. The EFL is aware that LCFC has disputed the EFL’s entitlement to impose this constraint, which is both restrictive and premature, with more than a quarter of the club’s 2023/24 reporting period remaining.”

Some rival clubs fear Leicester could avoid punishment this season. The delay is a result of their relegation last May taking place before new rules were introduced at the Premier League’s annual meeting.

On Thursday, Leicester were referred to an independent commission for alleged breaches of PSR. These breaches include an alleged failure to submit financial information to the Premier League.

This month, it was revealed the EFL’s Club Financial Reporting Unit had failed to impose a business plan on the club after they were forecast to breach loss limits.

Leicester successfully argued the plan could not apply as they had been a Premier League club in two of the years in the financial period.

The Premier League and the EFL have both been approached for comment.